Want To Retire With $US1 Million? Here's How Much You Should Already Have Saved

We recently looked at how much money you would need to be saving each month in order to be able to retire at 65 with a million dollars assuming you started from zero.

Now, here is how much you should have saved up already at different ages in order to hit the goal of being a millionaire retiree.

Assuming a 6% annualized rate of return and a monthly contribution of $US400 starting at the indicated age, this chart shows the savings balance you need by that age in order to get a total of $US1,000,000 by the time you are 65 and ready to retire:

A 20 year old under these conditions would need to have nothing saved up — putting in $US400 a month at a 6% return will get them about $US1,113,851 by the time they are 65, even with nothing in the account to start with. Meanwhile, if a 40 year old wants to retire with a million dollars with our assumptions, they need to have already saved up $US161,573.

Naturally, you need less already saved up at a given age if you can put more into your account on a monthly basis. The following table shows how much you need to have saved at each age for a range of monthly contributions, again assuming a 6% rate of return:

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